According to the Center for Disease Control and Prevention,life Expectancy

question 48

Multiple Choice

According to the Center for Disease Control and Prevention,life expectancy at age 65 in America is about 18.7 years.Medical researchers have argued that while excessive drinking is detrimental to health,drinking a little alcohol every day,especially wine,may be associated with an increase in life expectancy.Others have also linked longevity with income and gender.The data relating to the length of life after 65 (Life) were collected.Data also include: average income (in $1,000s) (Income) ,the average number of alcoholic drinks consumed per day (Drinks) ,and a dummy variable Woman.The following model was created: Life = β₀ + β₁Income + β₂Drinks + β₃Woman + ε.The Excel partial output corresponding to this model is shown below. Which of the following are the competing hypotheses to determine if women live longer than men?

• A) H₀: b₃ ≤ 0;H_A: b₃ > 0
• B) H₀: b₃ ≥ 0;H_A: b₃ < 0
• C) H₀: b₃ = 0;H_A: b₃ ≠ 0
• D) H₀: b₂ = b₃;H_A: b₂ ≠ b₃

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Definitions:

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Accounting For Inventories

The process of tracking and managing the goods a company holds for the purpose of sale or production, including valuation and cost determination.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real time through continuous updates to inventory accounts.

LIFO Assumption

An inventory costing method that assumes the last items purchased are the first ones sold (Last In, First Out).